Friday, June 17, 2011

Bank of Botswana Holds Rate at 9.50%

The Monetary Policy Committee of the Bank of Botswana held its benchmark interest rate unchanged at 9.50%. The Bank said: "Maintaining the prevailing level of interest rates is consistent with the achievement of the bank's 3-6 percent inflation objective in the medium-term," also noting the "Upside risks to the inflation outlook include any unanticipated large increase in administered prices and government levies, as well as an increase in international oil and food prices beyond current forecasts."

Previously the Bank also maintained the bank rate unchanged at 9.50% during its April meeting. Botswana recorded inflation of 8.2% in April, compared to 8.5% in both March and February, up from 7.9% in January, and above the central bank's target range of 3-6%, according to the Bank.